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LUGANO/WESTLAKE VILLAGE - Energy Vault Holdings, Inc. (NYSE:NRGV), currently valued at $182.57 million and showing strong returns of over 34% in the past year according to InvestingPro data, has entered an exclusivity agreement for a $300 million preferred equity investment to launch Asset Vault, a subsidiary focused on developing and operating energy storage assets globally.
The investment, expected to close within 30-60 days pending regulatory approval, will fund over $1.0 billion in capital expenditures for 1.5 GW of projects across the U.S., Australia, and Europe. The preferred equity structure is non-dilutive to common shareholders and includes milestones for equity participation in the parent company. This funding comes at a crucial time, as InvestingPro data shows the company has been quickly burning through cash with a current ratio of 0.86, indicating short-term liquidity challenges.
Asset Vault will be a fully consolidated subsidiary that will own and operate energy storage projects supported by long-term offtake agreements. The company plans to leverage its operational expertise to achieve lower capital and operating expenses through its energy management software platform.
Energy Vault’s portfolio already includes operational projects such as the Cross Trails BESS (57MW/114MWh) and Calistoga Resiliency Center (8.5MW/293MWh), as well as the contracted Stoney Creek BESS project in Australia with 125 MW/1.0 GWh capacity.
"The $300 million investment and the creation of Asset Vault unlock the full potential of our Own and Operate storage IPP strategy with immediate investment flexibility," said Robert Piconi, Chairman and CEO of Energy Vault, according to the company’s press release.
Energy Vault will maintain voting and operational control of Asset Vault while self-performing engineering, procurement, and construction services for the subsidiary’s projects. This arrangement is expected to generate additional revenue streams for the parent company.
The company projects that Asset Vault will generate over $100 million in recurring annual EBITDA within 3-4 years, which would be additive to Energy Vault’s existing energy storage solutions business.
Energy Vault plans to host a Virtual Investor Day following the transaction’s close to provide further details about the new platform.
In other recent news, Energy Vault Holdings Inc. has completed the acquisition of the Stoney Creek Battery Energy Storage System project in Northern New South Wales, Australia. This marks the company’s first acquisition in Australia and expands its global Own & Operate portfolio. Additionally, Energy Vault has secured an agreement with Consumers Energy to supply two battery energy storage systems totaling 75 MW/300 MWh in Michigan. Construction for this project is set to begin in early 2026, with operations expected by the end of that year.
In California, the Calistoga Resiliency Center, a hybrid microgrid energy storage facility, received approval to participate in the California Independent System Operator energy markets. This approval will enable the facility to provide grid services and generate revenue in the state’s wholesale electricity market. In Texas, Energy Vault announced an agreement with Jupiter Power to supply a new 100 MW/200 MWh battery energy storage system to the Electric Reliability Council of Texas region. This follows a successful deployment of a similar system last year.
Furthermore, Energy Vault successfully closed $18 million in project financing for its Cross Trails battery energy storage system in Texas. The system, which began operations in June 2025, supports renewable energy production and grid resiliency. The company also anticipates receiving over $12 million in Investment Tax Credit-related funds later this quarter.
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